Insights

As previously reported, the Pennsylvania Department of Revenue (“Department”) issued Tax Bulletin 2011-01, clarifying existing nexus standards for remote sellers. Initially, remote sellers had until February 1, 2012 to become licensed and begin collecting sales tax if they met the nexus standards. The Department, referencing Pennsylvania’s complex sales and use tax laws, has now extended the nexus compliance deadline for remote sellers to September 1, 2012.

The Department is indicating that this is the only deadline extension being offered. Businesses that meeting the nexus standards that do not adhere to the September 1, 2012 deadline face a variety of escalating enforcement options, including audits, assessments, liens, or referral to a collection agency.

Remote sellers should review their current business activities and consult with their state and local tax professional to determine if sales tax nexus exists with Pennsylvania under the Department’s new guidelines.

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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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